October 2, 2024
SINGAPORE – Consumer electronics manufacturer Dyson laid off an undisclosed number of workers in Singapore in a surprise move on Oct 1, blindsiding a union it had signed a collective agreement with.
The United Workers of Electronics and Electrical Industries (UWEEI) said in a statement signed by its executive secretary Patrick Tay and released late on Oct 1 that it was disappointed the union was given only one day’s notice of the exercise by the company. This leaves insufficient time for meaningful discussion between the parties involved, the union said.
“Unionised companies should work with their unions in a timely manner to ensure that a fair and equitable process is carried out to safeguard the interests of all workers, especially our Singaporean core,” UWEEI said.
It has escalated the matter to the Ministry of Manpower (MOM).
However, it added: “The union understands that the affected workers fall outside its scope of representation under the collective agreement with Dyson.
“Nonetheless, UWEEI stands ready to support affected workers.”
In response, a Dyson spokesperson said: “Dyson respectfully informed UWEEI in advance. Dyson is following all prevailing guidelines from MOM and providing employees with the support they need, including outplacement services and employment assistance programmes.”
“We constantly evolve the composition of our teams and take steps to ensure we have the right skills in the right places.
“Our ambitions in Singapore remain unchanged, and we anticipate that we will continue to grow here in the medium term,” the spokesperson added.
The spokesperson declined to comment on the number of workers and types of roles affected, as well as the severance package offered.
However, The Straits Times understands that the quantum of the retrenchment package is in line with prevailing norms in Singapore, and includes counselling and job-matching services.
According to the Manpower Ministry’s website, the prevailing norm is a retrenchment benefit of between two weeks and one month’s salary per year of service, depending on the company’s financial position and the industry.
In unionised companies where the amount of retrenchment benefit is stated in the collective agreement, the norm is one month’s salary for each year of service.
The company employed over 1,920 staff here as at the end of 2023, after an expansion of head count by 35 per cent that year.
An Economic Development Board (EDB) spokesperson said Dyson maintains a significant presence in Singapore through its headquarters as well as innovation and advanced manufacturing activities.
“As Dyson reviews the composition of its teams to ensure it continues building up expertise in areas relevant to its business needs, EDB will work closely with the company and relevant government agencies to assist affected employees.
“This includes facilitating job placements with companies that require their skill sets and capabilities.”
The retrenchment exercise was done very discreetly, with those impacted receiving an e-mail notifying them of a one-on-one meeting, an affected employee told news outlet CNA. Those laid off were from the manufacturing and procurement departments.
The retrenchments come after Singapore-headquartered Dyson announced on July 9 that it would lay off about 1,000 of its 3,500 staff in Britain as part of global restructuring. When asked about the fate of its almost 2,000 staff in Singapore, the multinational company said then that there would be no direct impact here.
UWEEI said it will work with the National Trades Union Congress’ Employment and Employability Institute to help match affected workers to employment opportunities.
It will also support them with career coaching and job training, where needed.
UWEEI also said its members may tap the Union Training Assistance Programme fund to offset training courses, should they require skills upgrading.
UWEEI will also assist members who may face financial hardship via its various assistance programmes.
The union called for companies to observe guiding principles outlined in NTUC’s Fair Retrenchment Framework and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
It encouraged affected workers and union members to reach out for assistance on 6440-2338 during working hours or via e-mail at UWEEI@ntuc.org.sg